Speaker 1: Well, we're very active managers. So we don't just sit
Speaker 1: in and come mov bank all year and get three
Speaker 1: and a half percent cash yield. That's not great, as
Speaker 1: you said, I mean, what we do is actively trade
Speaker 1: our strategy to maybe get Conwolf banks vital dividend, which
Speaker 1: was paid a couple of months so back, and then
Speaker 1: we'll potentially sell out of the sell down our holding
Speaker 1: and move into other stocks paying dividends at other times
Speaker 1: of the year. So we actively trade to try and
Speaker 1: get capture more dividends, and that way we can generate
Speaker 1: a lot higher income than the market, because, as you've said,
Speaker 1: the market's income now is pretty lousy.
Speaker 2: The reality is.
Speaker 1: There's only so much you can do that the market
Speaker 1: yields well cash yield actually our latest numbers of three
Speaker 1: point seven percent. We can get a couple percent more
Speaker 1: by doing this rotation, but as there is a limit
Speaker 1: to how much you can get, and the reality is
Speaker 1: we've beholden to the amount of dividends that are being
Speaker 1: paid and we'd certainly like dividends to increase, but for
Speaker 1: dividends to increase, earnings need to increase because that's how
Speaker 1: companies can pay uvans and for that to happen, we
Speaker 1: need to see the economy being stronger, and hopefully we
Speaker 1: will see rates falling fairly stood and hopefully the economy
Speaker 1: will start to well get back to a normal pace
Speaker 1: of growth and companies can expand their earnings.
Speaker 3: Have you seen any and I doubt the banks are
Speaker 3: in this group, but have you Are you aware of
Speaker 3: any stocks that fit that description that the yield is
Speaker 3: healthy as good as anyone else, but their forecast, their
Speaker 3: compound annual growth forecasts are at the level you'd like
Speaker 3: to see the whole market. Are the companies that are
Speaker 3: outstanding there? We don't like to give too many stock
Speaker 3: chips of the trust. No, I don't mean this is
Speaker 3: fact on the public record. I mean I'm thinking of someone.
Speaker 3: I saw a piece recently where someone looked at the
Speaker 3: whole top fifty on an income basis and who would
Speaker 3: grow and they found three three that matched their criteria
Speaker 3: for income growth.
Speaker 4: I mean, that is it? That grim?
Speaker 1: Look, it's pretty tough out there because the bank's earnings
Speaker 1: are pretty flat, albeit they have low bad debts, so
Speaker 1: people will worry they were going to have a collapse
Speaker 1: at earnings, but their earnings are still fairly strong at
Speaker 1: strong high levels, but they're not growing substantially.
Speaker 2: Resource stocks.
Speaker 1: Most commodity prices are down, but I would say one
Speaker 1: are the bright areas there are going to name stocks,
Speaker 1: but gold prices have held up very well, and the
Speaker 1: sort some very large increases in dividends, albeit from phairly
Speaker 1: small levels in gold stocks.
Speaker 2: Right.
Speaker 1: And an area that a year or two back was
Speaker 1: struggling was the utilities, but the likes of AGL and Origin,
Speaker 1: the prices are growing, they're starting to make more money.
Speaker 1: And like the insurance for the last couple of years,
Speaker 1: but it's probably getting towards the end of the insurance cycle.
Speaker 1: But I'm sure your listeners all know the insurers have
Speaker 1: been jacking up their prices and insurance premiums have been
Speaker 1: growing well. One way to heats that is to be
Speaker 1: an invest an insurance company.
Speaker 2: Rise.
Speaker 3: Okay, just before we go to the break, can I
Speaker 3: ask you about the banks? Everyone got it wrong? Right,
Speaker 3: not almost everyone? I mean, And I did some coverage
Speaker 3: on this, and maybe I was lucky, but I remember
Speaker 3: thinking I actually did a piece one night one weekend
Speaker 3: and said I've just seen yet another one of these
Speaker 3: stoff broken rodes.
Speaker 4: Sell all your banks. And I was.
Speaker 3: Saying to our readers, don't take this, read this in context.
Speaker 3: This is an institutional broker dropping to institutional investors. They
Speaker 3: trade in and out of banks. If you're a long
Speaker 3: term heroldholder of the bank, be very careful about selling banks.
Speaker 3: As it turned out, banks were, I mean, way better
Speaker 3: than I thought. I thought that they just wouldn't fall,
Speaker 3: as these brokers had suggested a few months ago, And
Speaker 3: it turned out that not only did they not fall,
Speaker 3: they've been absolutely maybe absolutely unbelievable, haven't they really? For
Speaker 3: big four banks that were the business is only ticking
Speaker 3: along really on many fronts. But the share price surging
Speaker 3: ten twenty percent in some stage for big four banks,
Speaker 3: and now they're still seeing so of them, which, of course,
Speaker 3: you're right in the end, You're always right in the end.
Speaker 3: It'll be a stop market crash some day. We're all
Speaker 3: going to be right about that. We just don't know
Speaker 3: when where do we stand now on banks? Do you
Speaker 3: see them they're so important? Do you see them as
Speaker 3: appropriately placed at these levels?
Speaker 1: I'll first say that we didn't sell all our banks,
Speaker 1: that's for sure. We still see there's some pretty good
Speaker 1: dividends out of them, so I suppose we were't overweight,
Speaker 1: but we held a sort of index weight to the banks,
Speaker 1: so we certainly didn't get sucked into the sell them
Speaker 1: all because there's going to be a disaster. But look,
Speaker 1: they're certainly not cheat. You going to mean combacks now
Speaker 1: on a price earnings ratio of twenty four are very
Speaker 1: very low dividend yield.
Speaker 2: They're certainly not cheap, but.
Speaker 1: I would say that they're pretty good quality. I might
Speaker 1: get myself into trouble here, but i'd call it a cozyologopoly.
Speaker 1: You've got the big four banks, there's not a huge
Speaker 1: amount of competition, they're well capitalized, they haven't got any
Speaker 1: bad debts. So I think that the issue was go
Speaker 1: back eighteen months ago, there was a lot of scare
Speaker 1: mongering and people, a lot of strategists and as you said,
Speaker 1: some of the institutional bank analysts were very negative on
Speaker 1: banks and thought that'd have huge bad debts and it
Speaker 1: hasn't eventuated because infrat rates haven't risen much. More Over,
Speaker 1: they'd be pretty stable. Over the last twelve to eighteen months,
Speaker 1: house prices have generally gone up for it. A couple
Speaker 1: of markets have gone down a little bit, but not much.
Speaker 1: And if you think about it, banks are a leveraged
Speaker 1: quay on Australian property because most of their loans now
Speaker 1: are mortgage loans and if they out in Australian housing
Speaker 1: market is solid, then there won't be bad deads and
Speaker 1: that's what's happened. So and I think the outlook is
Speaker 1: still pretty good so Australian property. So I think the
Speaker 1: Australian Bank's still pretty good. But you are paying a
Speaker 1: lot for them. I suppose that is the issue.
Speaker 4: Okay, very good, but take a short break. We'll be
Speaker 4: back in a moment.
Speaker 3: Hello, Welcome back to the Australians Money Positive podcast. I'm
Speaker 3: James Kirby. I'm talking to doctor Don Hamson of the
Speaker 3: Pedal Investment Management. They have a variety of funds. The
Speaker 3: fund in particular that has triggered the invitation. You know
Speaker 3: what I mean for Don, is there flagship fund which is.
Speaker 1: Called a steep Place Australian Chairs Income Fund, our.
Speaker 3: Reats, real estate investment trusts, property trusts are they included?
Speaker 3: They're technically not shares there. Realestate trust Are they included
Speaker 3: in your basket.
Speaker 1: Of Yes they are because they're listed, they pay cash.
Speaker 1: It might not be called it's called the distribution, but
Speaker 1: it's still essentially cash being paid out. So yes, they're
Speaker 1: in the our universe there and we have some of
Speaker 1: them in our fund. But what they don't have generally
Speaker 1: is freaking credits and should One of the icing on
Speaker 1: the cake of dividends in from companies in Australia is
Speaker 1: you get these tax credits called freaking credits, and they're
Speaker 1: quite valuable and you don't get them with reats.
Speaker 3: So I expect the read the property trust has to
Speaker 3: be better basically if they like for light than the
Speaker 3: share to get into your portfolio because it doesn't have
Speaker 3: the franking are there?
Speaker 4: How do you see reads right now?
Speaker 3: Because they they're very beaten up right, everything went wrong,
Speaker 3: everyone working from home and the interest rate's going the
Speaker 3: wrong way on them.
Speaker 4: So they must be promising?
Speaker 2: Are they? At the moment?
Speaker 4: As a sector they're starting to look good value?
Speaker 1: That's correct, But I think COVID has still changed the world.
Speaker 1: If I work in the center of Sydney, you're in
Speaker 1: Melbourne and the Mondays and Fridays, it's still pretty quiet
Speaker 1: in Sydney and Melbourne. That whether you're a coffee shop
Speaker 1: owner or you're a building owner. If you haven't got
Speaker 1: a lot of customers for two out of five days,
Speaker 1: it's going to be tough to make ends meet. It's
Speaker 1: going to be tough to charge your coffee shop at
Speaker 1: huge rental, those sorts of things. So a lot of
Speaker 1: people say working from home, they're hot desking, et cetera.
Speaker 1: So what a group two don't have as much demand
Speaker 1: for space, So that trend like it's slowly working its
Speaker 1: way back, but there's some groups to talking it up
Speaker 1: that they want people in five days a week, but
Speaker 1: there's still a huge number that are probably more like
Speaker 1: two to three days a week. And so I think
Speaker 1: it's particularly the office area is pretty soft. Some of
Speaker 1: the in the suburbs. In retail is looking better, but
Speaker 1: you know, reats have been a fairly soft area. One
Speaker 1: of the areas of one of the companies we've liked,
Speaker 1: US has been good in group because they've they're really
Speaker 1: a developer more than anything else, but they've called the
Speaker 1: cycle very well and they're they're almost an AI play
Speaker 1: in Australia because they're developing data centers around the world
Speaker 1: and doing that very well. They've got their footprints on
Speaker 1: it that before that they were ahead of the pack
Speaker 1: building distribution centers for deliveries, et cetera. So they've called
Speaker 1: it very well and from a totally termed point of view,
Speaker 1: have been great. But they're not good from an income
Speaker 1: point of view.
Speaker 3: Yes, because they're so highly priced, because they're so been
Speaker 3: so impressive for so long. Amazing company. Absolutely, Larry Goodman.
Speaker 3: Greg Goodman has managed to not just write out all
Speaker 3: the times of trouble in property market, but it's that
Speaker 3: amazing thing where he seems to be able to strategically
Speaker 3: look ahead and then execute on that and get it right.
Speaker 3: And if you get the strategy right on very big companies,
Speaker 3: as we all know, you can get a lot of
Speaker 3: things wrong if you get the strategy right. So just
Speaker 3: one last thing on the property trust and it sounds
Speaker 3: to me like you're not exactly scooping them up as
Speaker 3: bargains out there. I mean, Goodman, as you say, is exceptional.
Speaker 1: Really yeah, No, we're not significantly increasing our exposure, that's
Speaker 1: for sure there. And as the fact that they don't
Speaker 1: have Frankie means they're sort of unattractive from a your
Speaker 1: point of view. And that's an interesting thing is that
Speaker 1: whilst our fund is called an income fund, we also
Speaker 1: try it out for so it's not all about income.
Speaker 1: And as I mentioned before, if I think most people
Speaker 1: as health CBA stock are very happy, that's training one
Speaker 1: hundred and thirty five dollars. The yields stay down a bit,
Speaker 1: but tighter return terms. You've actually done very well out
Speaker 1: of the last twelve months out of a the banks.
Speaker 4: Really all right, Look, we take a break.
Speaker 3: We's got some great questions off which are very suitable
Speaker 3: she rates, especially for you. So we'll be back in
Speaker 3: a moment. Hello, Welcome back to the Australian's Money Puzzle podcast.
Speaker 3: James Kirvey here with Don Hampson of the Plato Group,
Speaker 3: and we're talking all things dividends and income on the
Speaker 3: Australian market, which as I say, is so important on
Speaker 3: the Australian market because we have franking credits, which means
Speaker 3: that your income is always better than it seems. And
Speaker 3: if your bank pays four percent, in fact in reality
Speaker 3: it's probably five or six percent to you. If you're retired,
Speaker 3: it's even higher. I remember, the less tax you pay them,
Speaker 3: the better they are, which was a point great, a
Speaker 3: point of big contention recent election, but I think everyone
Speaker 3: learned from that about franking credits and how they were Now.
Speaker 3: The first question is from ran Jan and he says,
Speaker 3: I like this question. There are often reports about meetings
Speaker 3: between analysts and management of listed companies, and after these meetings,
Speaker 3: the analysts publish their notes to their clients. The notes
Speaker 3: are picked up by the media, and small investors like
Speaker 3: me do not get such access, and he wonders, basically,
Speaker 3: do this is this reflected in this share price? And
Speaker 3: this is the whole thing fair. He also mentions the
Speaker 3: fact that he does podcast while he's ironing. I will
Speaker 3: be got lots of ironing to do, rand Jan, because
Speaker 3: it's a half an hour long podcastle I used to
Speaker 3: make out that it was about three minutes per shirt.
Speaker 3: That was always my ruler on the ironing. We were
Speaker 3: always asking people, don't what they do when they're listening?
Speaker 3: You see so so rad John studs out. We haven't
Speaker 3: had someone say they do their ironing before. Tell me
Speaker 3: about that privileged access. It must be somewhere in the
Speaker 3: middle there. We saw major bank recent the I mean
Speaker 3: a big four bank banned from RBA meetings if you
Speaker 3: don't mind, if you don't mind, because of the exact
Speaker 3: issues like does it matter to you, professional investor, how
Speaker 3: much have you got under management?
Speaker 1: Ah, we're approximately seventeen billions.
Speaker 3: Seventeen billion, that is, that is a big amount of
Speaker 3: money under management. Do you get invited to everything you
Speaker 3: want to In the way of these press briefings, we.
Speaker 1: Tend to, well, it goes too many of them, actually,
Speaker 1: because look, I think this is where the world has
Speaker 1: changed many years ago. But in the good old days,
Speaker 1: the view was you would go to company management, you'd
Speaker 1: have a chat with them, and they would tell you
Speaker 1: things that are not on the public record, and you
Speaker 1: could get virtually access to inside information. But that's definitely
Speaker 1: these days and as it does crack down on that,
Speaker 1: and so there's not there shouldn't be as well, this way,
Speaker 1: there shouldn't be any information that's sort of inside that
Speaker 1: it's releasing. Those analyst meetings, et cetera. Would I've been
Speaker 1: to quite a few in the past, and most of
Speaker 1: them it's management just blowing their own trumpet to some extent, so.
Speaker 4: Telling you how great everything is going. Yes, that's right, Yeah,
Speaker 4: I know all too well.
Speaker 1: Yeah, so we don't tend to spend a lot of
Speaker 1: time there, but Ooka, I don't think it's a big
Speaker 1: deal these days. I think maybe twenty thirty years ago
Speaker 1: that was definitely a concern and that's why asks you
Speaker 1: pushed the companies and made sure that they aren't disposing it.
Speaker 1: But occasionally there might be something let's let's slip it.
Speaker 1: If a company does do that, they should technically immediately
Speaker 1: announce it to the market that they've said something that's.
Speaker 3: I imagine Ranjan and all listeners. It's more an issue
Speaker 3: with small small caps because still things are tight and
Speaker 3: maybe not many people turn up to their briefings anyway,
Speaker 3: they're so delighted that someone actually arrives they probably tell
Speaker 3: the broken more than they should. That's one thing, But
Speaker 3: then at the other level, it's stunning really that the
Speaker 3: RBA have had issues with major banks and their briefings,
Speaker 3: and there's always issues around that. How do you communicate
Speaker 3: effectively to the market without giving someone privileged over another
Speaker 3: don Is there some AI software something that you guys
Speaker 3: can use to tune into some of these often terribly
Speaker 3: boring three things and pick up matters.
Speaker 1: There is, actually, yes, we do use artificial intelligence to
Speaker 1: actually read our management transcripts to try and pick.
Speaker 2: Out the toad all it.
Speaker 1: But remember that and because the problem is in Australia
Speaker 1: there are three hundred companies and we also manage global
Speaker 1: equities as well, and they're literally that we track about
Speaker 1: ten thousand, so there's no way anyone has a team
Speaker 1: big enough to be able to read all of those,
Speaker 1: and so we do our use AI techniques but also targeted.
Speaker 1: So for instance, we'll be looking at keywords around dividends
Speaker 1: because we are very income focused at franking credits. Right, nice,
Speaker 1: but yeah, look at these and we've been doing this
Speaker 1: for a number of years. This isn't something that's like
Speaker 1: just Johnny come lately in the last twelve months when
Speaker 1: everybody gets hyped about. We've been using these sorts of
Speaker 1: techniques for quite a while to find out little bits
Speaker 1: of information that might be hidden somewhere.
Speaker 4: And that's fascinating.
Speaker 3: It's take an enhancement of control F on the BDF
Speaker 3: if you're looking for it for dividend. I know when
Speaker 3: I go into the budget, I do control F super
Speaker 3: et cetera. So okay, just one nice te on that
Speaker 3: is it morthat is it. Do you think it's an
Speaker 3: enhancement to your actual effectiveness.
Speaker 1: Look, it is marginally beneficial, but I wouldn't say that
Speaker 1: it's changing the world dramatically. And I think this is
Speaker 1: where there's a lot of hype about AI and it's
Speaker 1: going to make no one's going to have a job
Speaker 1: and all that sort of stuff. But the reality is
Speaker 1: you need to be very cautious the way you use it,
Speaker 1: and I think the benefits are still relatively marginal.
Speaker 2: Now maybe over time.
Speaker 1: I'll definitely get better and etcetera. But you need to
Speaker 1: be very careful how you use it, and at the
Speaker 1: moment the results, yeah, marginal. There's a benefit in doing it,
Speaker 1: but it's not chalk and cheese.
Speaker 4: Very interesting.
Speaker 3: I read a terrific piece in the Wall Street Journal
Speaker 3: last weekend where one of the chiefs of AI at Meta,
Speaker 3: who is also a famous economist in his own right,
Speaker 3: said that AI that at the current levels of AI
Speaker 3: were no more intelligent than the average housecat, which was
Speaker 3: an extraordinary thing to say for someone who was in
Speaker 3: the head of AI at Meta. Now that's as simple
Speaker 3: as it sounds, but he was making the point that
Speaker 3: many were overestimating its impact and if he's right. If
Speaker 3: he's right, of course, then you got to question a
Speaker 3: lot of the heat around AI stocks in Nvidia or
Speaker 3: even you just mentioned Goodman or next D seats, et cetera.
Speaker 3: But we'll come to that another time because we've had
Speaker 3: some specialists on AI. All right, thank you for the question,
Speaker 3: manj and really good topic there. And this is in
Speaker 3: information only. Everybody you know that it's not advice. Okay,
Speaker 3: scific question from Josh. Is there growth left in Transurban
Speaker 3: over five years? It's down eight percent? Small dividend. Interesting question, Josh. Now,
Speaker 3: Transurban was very much one of the very much like
Speaker 3: basically the banks, the two supermarket groups if you were
Speaker 3: so inclined and prepared for the cyclicality, the two big miners,
Speaker 3: and then Transurban. They really were the backbone for dividend
Speaker 3: players in the share market. Transurbent, I look at the
Speaker 3: stock and I see it's been doing nothing for years.
Speaker 3: I see that it was a fabulous stock for a
Speaker 3: long time.
Speaker 4: It's differ in.
Speaker 3: Deed as I recall, it's about four it's actually more
Speaker 3: or less the same as the market, So there's nothing
Speaker 3: particularly wrong with it.
Speaker 4: Have you any view on it?
Speaker 2: Done well?
Speaker 1: Again, it doesn't have franking, so that makes it less
Speaker 1: attractive for us.
Speaker 2: I mean, you look at it, it's.
Speaker 1: Essentially owns to roads and so what you need is
Speaker 1: either more cars on the road or they need to
Speaker 1: lift their prices in their Yeah, those process generally a
Speaker 1: link to inflation in some of their roads.
Speaker 2: To have a bit more ability to do it.
Speaker 1: But I think COVID, now it's four and a half
Speaker 1: years ago, but showed that at least thing the safe,
Speaker 1: as safe as gold.
Speaker 2: It's demand can change, and maybe.
Speaker 1: It's still a long way away, but if we have
Speaker 1: self driving cars or other things, maybe there'll be more
Speaker 1: cars on the road.
Speaker 2: Maybe it'll be less cars on the road.
Speaker 4: So if he knows what, it's very interesting.
Speaker 3: So so it sounds that it's not.
Speaker 4: The stock it was.
Speaker 1: Yeah, I think, to be honest, we've never been a
Speaker 1: big fan because it does over the Frankie. It's not
Speaker 1: you know, it's not as I yield. So it's relatively safe.
Speaker 1: But safe stocks can get hurt when you have a
Speaker 1: COVID event.
Speaker 2: Just like you.
Speaker 3: We're talking about that the cities on Mondays and Fridays.
Speaker 3: I still I am still even now amazed I can
Speaker 3: drive home on a Friday afternoons so easily. It used
Speaker 3: to be hell and I just cruise home every Friday afternoons,
Speaker 3: which tells me that I am among along the minority
Speaker 3: that's in the city. All right, Nick, it's in the
Speaker 3: turbulent start of the year for minreys mineral resources, one
Speaker 3: of the big lithium players. Huge price drop followed by
Speaker 3: mixed headlines. Do you see bride prospects from minrays and lithium? Well,
Speaker 3: Rio Tinto certainly see bright prospects. And they just paid
Speaker 3: a hell of a lot for the Arcadian lithium operation.
Speaker 3: I mean a lot more than anyone thought it was worth.
Speaker 3: It's obviously worth a lot to Rio because they can
Speaker 3: kno get into the sixtra ordinary fantastic in the global
Speaker 3: mining compendium of resources that they have. Where are you
Speaker 3: on the miners, I know they're sickrely go when they're good.
Speaker 3: They're really good, aren't they? As dividend pairs? And then
Speaker 3: they really topple over. What do you what's your views?
Speaker 1: Well, what'll be flipping answer a bit. I mean mine
Speaker 1: is already gonna be as good as the one of
Speaker 1: the processes that they are. And in the last twelve
Speaker 1: to eighteen months has been a big fall lithium process
Speaker 1: because evs haven't Demand hasn't been as strong as people thought.
Speaker 2: Aubrids are actually become.
Speaker 1: More think more in vogue than evs, and there's been
Speaker 1: a lot of supply because there is a lot of
Speaker 1: lithium around the world. They also have iron oreso iron
Speaker 1: ore prices are also down, so there are two main
Speaker 1: commodities are going against them. I'm probably more bullish in
Speaker 1: the longer term because I think we will eventually get
Speaker 1: to a worded world of electric cars and pat Memal
Speaker 1: Resources itself is going to electrify a lot of its
Speaker 1: operations and reduce submissions. I think iron ore prices probably
Speaker 1: will come back in the longer term because it's not
Speaker 1: all about China. I think the prospects for I'm talking
Speaker 1: the very long term here is India, but there might
Speaker 1: be so many years before India sort of the demand
Speaker 1: from India ossets potentially softer demand from China below. China
Speaker 1: has been doing a few things to increase their their
Speaker 1: GDP recently.
Speaker 4: Yes, yeah, absolutely, all right.
Speaker 3: One last question from Michael, and it's about ETFs, which
Speaker 3: I imagine you hear a lot of both done as it
Speaker 3: used of ETFs though Jack Bogel's books, Jeff Bogel being
Speaker 3: the original of the species here, he basically created the
Speaker 3: index fund and then created Vanguard, which is by the way,
Speaker 3: I'm mutual. I always said, that's amazing. It's not as
Speaker 3: a mutualized operation. Okay, So here's his point. What I
Speaker 3: find amazing is commentators keep preferring to buying index funds
Speaker 3: as a way of getting average returns. But in Jeff
Speaker 3: Bogel's words, it's not delivering average returns. If you're investing
Speaker 3: for ten years, you're guaranteeing yourself to be in the
Speaker 3: top fifteen percent of returns. It's a really compelling message.
Speaker 3: So many plusses about ETFs, and we met regularly mentioned
Speaker 3: them on the show. So many negatives too, which don't
Speaker 3: get mentioned on generally, but they get mentioned on this show.
Speaker 3: Among the fact that you're buying all the rubbish and
Speaker 3: all the dross on every market, Among the fact that
Speaker 3: you're ethically oblivious to what you're buying, Among the fact
Speaker 3: that you're buying the stock that's completely widely overpriced. You
Speaker 3: got to keep buying it because the ETF must do
Speaker 3: it because it must reflect the index. There are weaknesses
Speaker 3: there with ETFs. When someone says to you, I like
Speaker 3: your idea. I love this idea of you focusing in
Speaker 3: an expert way with an expert team behind you on
Speaker 3: Australian high dividend shares. When someone says, why don't I
Speaker 3: just buy a dividend DTF, what is your well rehearsed
Speaker 3: response to that DN.
Speaker 1: Well, maybe we're in the top fifteen percent ourselves because
Speaker 1: we've out formed the index over the thirteen years since
Speaker 1: they've played our stranger's income funders being willing after fees.
Speaker 1: So we've bet an index. But I would say that
Speaker 1: includes the franking. But we compare ourselves with an index
Speaker 1: that obviously includes franking as well, so that it's apples
Speaker 1: with apples. Of course, I think a lot of the
Speaker 1: other thing I would say is I think a lot
Speaker 1: of that Jack Bogel stuff is based on US share markets,
Speaker 1: where I think it is tougher to app form the
Speaker 1: index for active managers, where particularly if you look at
Speaker 1: the wholesale surveys in Australia, there's quite a few a
Speaker 1: lot of Australian chair managers have actually outperformed.
Speaker 2: Over the longer term.
Speaker 1: Those are before fees though, so fees are very important.
Speaker 1: So if you think you're investing acive manager, but they've
Speaker 1: got egreges fees and performance fees and other things on
Speaker 1: top of that, you want to be careful about how
Speaker 1: much they're charging.
Speaker 3: Okay, very good, terrific. Look, thank you very much for
Speaker 3: being on the show. I know it would be good
Speaker 3: and we had a great discussion on this issue. The
Speaker 3: dividend picture is changing. It's a paradox maybe that it's
Speaker 3: changing because the share prices of the banks have finally
Speaker 3: lifted after many years ago doing nothing. But it creates
Speaker 3: new issues and it was great to talk.
Speaker 4: About that today. Thank you, Don Thank you James. Love
Speaker 4: to have you on.
Speaker 3: All right, folks, keep those emails running. I could do
Speaker 3: with some more questions. It comes in waves. I had
Speaker 3: too many. Now I have some spared capacities, so let's
Speaker 3: have them. The money Puzzle Australian dot com dot au. Questions, comments, observations,
Speaker 3: even complaints all welcome. And as I said, next week,
Speaker 3: I'm going to have a bit of frank with Alex
Speaker 3: Moffatt because he was on the desk the day the
Speaker 3: Australians woke up in October nineteen eighty seventy here that
Speaker 3: the share markets had fallen twenty five percent overnight. That
Speaker 3: is something that a lot of people can't even imagine.
Speaker 4: We're going to talk about that next week. Talk to
Speaker 4: you soon.